Senegal’s government needs to boost revenue and cut non-essential spending to finance investment in the energy industry, the International Monetary Fund said.
The IMF commented after its first review of a three-year advisory program to the West African state that began in December.
While Senegal’s economic performance under the program was “satisfactory,” it needs to do more to reduce regular power outages that have damped economic growth, the IMF said in a statement on its website yesterday. The fund advised the West African nation to use part of a $500 million Eurobond sale last month to boost generating capacity.
“Although there is some space for temporarily higher fiscal deficits, a substantial contribution will need to come from additional revenue measures and reprioritizing expenditure,” the IMF said, citing the fund’s Deputy Managing Director Nemat Sahfik.